The Bitcoin Kimchi Premium has surged to an impressive three-year high of 11.9%, reflecting the price gap between Bitcoin in South Korea and global markets.
This sharp rise suggests a robust domestic demand for cryptocurrency, even as global prices experience a downturn.
CryptoQuant CEO Ki Young Ju highlights that the recent surge is not due to Korean traders entering the market to buy the dip. Instead, he suggests that Bitcoin is being converted to USD rather than Korean Won. This indicates that relatively few Koreans are cashing out their Bitcoin for local fiat currency, a trend that could also be observed in other global markets.
#Bitcoin Kimchi Premium is 12% right now—a three-year high. The main reason for BTC drop seems to be the strong DXY. pic.twitter.com/fjFOyUH5Pr
— Ki Young Ju (@ki_young_ju) February 3, 2025
Notably, On February 1, President Trump announced new tariffs: a 25% tax on imports from Mexico and Canada and a 10% tax on Chinese goods, effective at 12:01 a.m. EST. This led to significant market declines, including Hong Kong’s Hang Seng (-2.07%), Japan’s Nikkei 225 (-2.27%), South Korea’s KOSPI (-2.87%), and Taiwan’s index (-3.74%), along with negative impacts on Indian stock futures.
Daniel Yan analyzed the Asian stock market on February 3, describing it as experiencing “another typical weak Monday.” He linked the sell-off to Asia’s increased vulnerability to U.S. protectionist policies and concerns about global economic instability, contributing to market uncertainty.
Sell-off: another typical weak Monday driven by low liquidity and CTAs chasing – Asia market these days can’t take any negative news nor apply independent thinking.
The tariffs won’t lead to much productivity shock or inflation shock for the U.S. – market will recover soon.
— Daniel Yan (@_D_Y_A_N) February 3, 2025
Despite current market challenges, analysts, such as Ansem, are optimistic about potential recovery in the stock and cryptocurrency markets if diplomatic talks between President Trump and Canada and Mexico regarding tariffs remain positive.
Meanwhile, A recent survey on South Korean cryptocurrency preferences shows Bitcoin as the top choice among investors, followed by Ripple (XRP) in second place, having surpassed Ethereum (ETH). Conducted on The POL with 5,225 participants, the survey indicates Bitcoin’s dominance due to institutional adoption and U.S. spot Bitcoin ETFs. Ripple maintains its strong appeal in South Korea, while Ethereum, Dogecoin, and Bitcoin Cash complete the top five, with Bitcoin Cash outperforming Solana and Cardano locally.
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